1. Antitrust Case

2. OUTLINE
Microsoft a monopoly?
Microsoft Antitrust Case Trial
Microsoft Antitrust Case Verdict
Microsoft Antitrust Case Appeal
SWOT Analysis
Conclusion

3. Microsoft a monopoly?
 In late 1990, Microsoft’s MS Office
applications had 90% of market share
 Market share in Internet browser market of
44%, server operating system 36%
 Microsoft adopted pricing policy that prevents
entry of new players and bundle policy
 Distributing Internet browser software, IE, free
of cost along with its windows operating system

4. Microsoft Antitrust Case: Trial
 US Government claimed, Microsoft broken Antitrust
policy
 October 1997, DOJ began Antitrust investigation
 May 1998, gave both parties 5months to fight suit
Allegations Justification by
Microsoft
Violating 1994 Consent Ruled out any kind of
decree Violation
Abuse of monopoly power Not a illegal monopoly
Made misleading statements Not possibly mean doom for
and claims competitors
Unfair market strategy No one has guaranteed
position

5. In June 2008, the US District court gave its ruling that
Microsoft has violated the antitrust laws by abusing its
power in operating system
 Jackson ruled that Microsoft was a monopoly; basing on 3
factors
 Microsoft’s share of the market for operating system was extremely
large & stable
 A high entry barrier protected Microsoft’s dominant market share
 High entry barrier
 Verdict Company should split into 2 smaller companies
 Windows operating system
 Internet & other Business
 Further
 Microsoft should auction off the windows source code

6. Microsoft Antitrust Case: Appeal
 September 2000, Supreme court declined
government’s bid
 Break up Microsoft not remedy: Supreme court
 Court upheld conclusion of Microsoft having
monopoly & violated US antitrust laws
 In 2001, court ordered Microsoft and US government
resolve remaining issues

7. SWOT Analysis
STRENGTH WEAKNESS
Huge Brand name and Customers lacked a
reputation in the market commercially viable alternative
Have a monopoly in the to windows
market Contradiction among own
products
OPPOTUNITIES THREAT
Have potential to attract Threat from competitors
more customers companies like from Linux and
Should establish a clean Apple
image May face strong illegal
obligation

8. Conclusion
 Microsoft dominance because of Antitrust case,
affected only for short run
 Microsoft’s OS monopoly continues today
 Microsoft has so many actions against it, can
only cover the most important
 Law should not eradicate competition rather it
should ensure proper competition